Probably the biggest news story to come out in markets over the past few days has been the change of branding for Facebook, the social media giant who announced a name change to become Meta. The official stock ticker will change to MVRS at the start of December, but in terms of the branding, Facebook has already changed and have rebranded as Meta. The change reflects a new outlook for the business, however given the small preview of what’s to come I’m not sure we know enough to buy the stocks yet and here’s why…
From my point of view, I wouldn’t buy Facebook shares with or without the latest news. Without the rebranding, I think Facebooks growth will slow down as increasing users becomes harder and harder. With the rebranding, I think it will high investment for years to come before any real profits can be made. They are the first to step up and try to achieve what they are trying to do, however I personally think this could wipe out the use from the older generations as the complexity might be too much!
In both cases, I don’t see how we’ll make a good return from buying Facebook shares now. I could be wrong, and the metaverse could be the future for all of us. But until I see convincing evidence of this, I think there are better stocks out there to make money from.
Given Snapchat (SNAP) recent 25% drop this Is a stock we are closely monitoring to try and achieve an appealing entry point. although, I’m not sure if It will be just yet as we don’t want to ‘catch the falling knife” we’d want this to settle first, some positive news to come out then we can look to buy the stock to make a profit.